CLAW Test 1 Study Guide
Discovery is the process of obtaining information from an opposing party before trial.
True
Duty-based ethical standards often come from religious precepts.
True
Effective corporate ethical policies must be clearly communicated to employees.
True
Ethical reasoning is the process through which an individual links his or her moral convictions or ethical standards to the particular situation at hand.
True
Ethics is the study of the principles and conduct that guide business decision making based on what is right and good.
True
Failure to live up to a standard of care may be an act or an omission.
True
False imprisonment occurs when a person restrains another intentionally and without justification
True
Focusing on a firm's short-run profits without considering the company's long-term needs may be acting unethically.
True
For jurisdictional purposes, corporations are considered legal persons
True
Generally, a foreign court's decision can be enforced in the United States
True
Government regulations can preempt claims for product liability
True
Harm must be foreseeable to be considered the proximate cause of an injury in negligence.
True
Hearsay evidence is testimony someone gives in court about a statement made by someone else who was not under oath at the time.
True
If a discovery request involves confidential business information, the scope of the request can be limited.
True
If it can be shown that a trespass to land was warranted, a complete defense exists.
True
If no harm results from an allegedly negligent act, there is no liability.
True
If people merely comply with the law, they are acting at the lowest ethical level society will tolerate
True
In a corporation, managers are often faced with ethical trade-offs when a certain decision will benefit one group, but harm another
True
In a federal form of government, the national government shares sovereign power with the states
True
In ethical terms, a cost-benefit analysis is an assessment of the negative and positive effects of alternative actions on individuals.
True
In many cases, a court can exercise jurisdiction over an out-of-state defendant who has done business in the state only over the Internet
True
In most states, if neither party requests a jury, the court presumes the parties waive this right.
True
International treaties often stipulate arbitration for resolving disputes
True
Law consists of enforceable rules governing relationships among individuals and between individuals and their society
True
Legitimate competitive behavior is a permissible interference with a contractual relationship even if it results in a breaking of the contract.
True
Litigation is the process of resolving a dispute through the court system.
True
Management's behavior sets the ethical tone of a firm.
True
Managers must apply the same ethical standards to their employees as they do to themselves.
True
Many different laws may affect a single business transaction.
True
Most state trial court decisions are not published
True
Negotiation can involve the parties to a dispute and their attorneys
True
People who keep domestic animals are strictly liable for any harm inflicted by the animals.
True
Procedural due process requires that any government decision to take a person's property must be made equitably.
True
Procedural law consists of all laws that outline the methods of enforcing rights.
True
Proximate cause exists when the connection between an act and an injury is strong enough to justify imposing liability.
True
Recovery in a product liability case may be limited when it can be shown that the plaintiff misused the product
True
Remedies in equity include decrees of specific performance
True
Remedies in equity include injunctions.
True
Small claims courts are inferior trial courts.
True
Some constitutional protections apply to business entities.
True
Some courts consider the negligent actions of both the plaintiff and the defendant when apportioning liability in a product liability action.
True
Some provisions of U.S. bribery laws are directed toward accountants.
True
Some states limit the application of strict product liability to situations involving personal injuries
True
Sometimes, there is no "good" answer to the ethical questions that arise
True
State courts are superior to federal courts.
True
Statutes are laws enacted by Congress and the state legislatures and comprise one of the sources of American law.
True
Statutory law includes state statutes.
True
Substantive due process limits what the government can do in its legislative and executive capacities.
True
The Bill of Rights protects individuals against types of interference by the federal government
True
The Constitution permits Congress to regulate interstate commerce.
True
The Eighth Amendment prohibits excessive bail and fines
True
The First Amendment prevents limits from being placed on independent political expenditures by corporations.
True
The Fourteenth Amendment guarantees a right to due process of law.
True
The U.S. Constitution is the origin of the authority for making laws that govern business
True
The bases of all torts are wrongs and compensation.
True
The checks and balances in the U.S. Constitution prevent any one branch of government from exercising too much power.
True
The courts, in interpreting statutory law, may rely on sources outside of the statute (such as legislative history in response to common law precedents) as a guide to what the legislators intended.
True
The courts, in interpreting statutory law, may rely on the common law as a guide to what the legislators intended
True
The expenses associated with an appeal can be considerable.
True
The federal government can regulate almost every commercial enterprise in the United States
True
The judicial branch has the power to hold actions of the other branches of government unconstitutional.
True
The minimum-contacts requirement is usually met if a corporation advertises or sells its products within a state.
True
The purpose of tort law is to provide remedies for the violation of various protected interests
True
The stability and predictability of the law are essential to business activities
True
The study of ethics goes beyond legal requirements to evaluate what is right for society
True
The taking of electronic records and data can form the basis of a conversion claim.
True
The term alternative dispute resolution refers to methods for resolving disputes outside the traditional judicial process.
True
The term venue refers to the location of a trial.
True
The use of evidence outside the pleadings distinguishes the motion for summary judgment from the motion for judgment on the pleadings.
True
To avoid product liability, a manufacturer must exercise due care in using the appropriate production process.
True
To be liable for product liability, a seller must normally be engaged in the business of distributing the product that causes harm by its use.
True
To succeed in a product liability suit, an injured plaintiff must show that a product's defect was the proximate cause of the injury.
True
Tort law provides remedies for acts that cause damage to property.
True
Trials courts conduct trials.
True
Under the supremacy clause, a valid federal statute or regulation will preempt a conflicting state or local law or regulation on the same general subject
True
When a user is injured as a result of a seller's misrepresentation, the basis of product liability may be the tort of fraud.
True
A jury instructs a judge in the law that applies in a case.
False
A key to avoiding business disputes is to go ahead without thinking ahead.
False
A person directly involved in the events concerning a lawsuit is known as an expert witness.
False
A plaintiff who voluntarily enters into a risky situation, knowing the risk involved, will be allowed to recover for any consequent injury.
False
Constitutional law includes only the U.S. Constitution.
False
Conversion is limited to theft.
False
Courts do not depart from precedents
False
Criminal acts are prohibited only by federal government statutes
False
Only a defendant can file a motion to dismiss.
False
Only a defendant may file a motion for summary judgment
False
The First Amendment protects commercial speech more extensively than noncommercial speech
False
The legality of an action is always clear.
False
Voir dire refers to the seriousness of the controversy in a case.
False
"UCC 2-207(1)" is a citation to Uniform Commercial Code Section 2-207, subsection 1.
True
. The dangers associated with using sharp knives are so commonly known that manufacturers need not warn users of those dangers.
True
A business firm may have to comply with the laws of any jurisdiction in which it actively targets customers
True
A case is remanded when it is sent back to a trial court for further proceedings consistent with the opinion of the appellate court.
True
A citation identifies the publication in which a legal authority can be found.
True
A company that acts ethically, or in good faith, has a stronger position in litigation than a company that does not.
True
A successful defense releases the defendant from liability for a tortious act
True
Acting in good faith gives a business firm a better chance of defending its actions in court
True
An individual's privacy rights can be protected by state law
True
Any relevant material, including information stored electronically, can be the object of a discovery request
True
Before a lawsuit begins, the court must have proof that the defendant was notified of the lawsuit
True
Corporations can be perceived as owing ethical duties to groups other than their shareholders
True
Damages are a remedy at law.
True
If a tax measure is reasonable, it is generally held to be within the national taxing power.
True
It may be unethical for a company to refuse to negotiate liability claims for alleged injuries because of a faulty product.
True
Laws and government regulations affect almost all business activities.
True
One defense to product liability is to show that there is no basis for the plaintiff's claim
True
Religious rules generally are absolute with respect to the behavior of their adherents.
True
Suppliers are generally required to expect reasonably foreseeable misuses of their products.
True
The role of the courts is to interpret and apply the laws.
True
A choice-of-law clause is a provision in a contract that excuses a party from liability for nonperformance due to "acts of God."
False
A counterclaim is raised by a plaintiff against a defendant's answer.
False
A court of appeals re-hears all of the evidence introduced at trial.
False
A default judgment is entered against a party only on proof that he or she was at fault in the matter at issue
False
A jury's good sense and careful consideration of consequences is known as jurisprudence.
False
A justiciable controversy is a case in which the court's decision—the "justice" that will be served—will be controversial
False
A law that has any impact on religion is unconstitutional
False
A motion for a new trial will be granted only if the trial judge feels that it is appropriate to grant a judgment for the other side.
False
A motion for summary judgment may be made before, during, or after a trial
False
A person assumes all risks associated with any activity in which he or she participates.
False
A product liability action based on negligence requires privity of contract between the injured plaintiff and the defendant-manufacturer
False
A reviewing court may reverse a trial court's judgment only in a case in which the plaintiff lost.
False
A state case typically originates in a federal court.
False
A summary judgment is issued only if there is no genuine question of fact.
False
A tortfeasor is one who wrongfully alleges that a tort has been committed.
False
A trial begins with the plaintiff's attorney's direct examination of the first witness.
False
According to utilitarianism, it does not matter how many people suffer a negative effect from an act
False
Adhering strictly to all business laws is all that is necessary to fulfill all business ethics obligations
False
Administrative law includes only state regulations
False
Administrative law is a source of American law that is consists of statutes
False
An action in strict product liability requires that a product be reasonably dangerous to a user or consumer.
False
Arbitration that is mandated by a court is often binding on the parties.
False
As a defense to product liability, comparative negligence completely absolves a defendant of liability.
False
Assumption of risk is no defense to a product liability action
False
At the beginning of a trial, only the defendant's attorney makes an opening statement.
False
Business owners' misbehavior has no negative consequences for their business.
False
Concurrent jurisdiction exists when only state courts have the power to hear a particular case.
False
Criminal law focuses on rights and duties that exist between persons.
False
Disparagement of property is a general term for the specific tort of appropriation.
False
Early neutral case evaluation refers to the resolution of a case before the dispute becomes contentious, when the parties' positions are said to be "neutral."
False
Either party may appeal a jury's verdict but only the plaintiff may appeal a judge's ruling
False
Ethics is as clearly defined as the law
False
For fraud to occur, seller's talk must be involved.
False
Fraud occurs only when there is justifiable reliance on a true statement.
False
Generally, the strict liability of manufactures and other sellers does not extend to injured bystanders.
False
If an action is legal, it is ethical.
False
In a common law system, judges generally follow stare decisis unless there is a compelling reason to overturn a precedent.
False
In mediation, the mediator proposes a solution and makes a decision resolving the dispute
False
In most states, in suits brought in small claims courts, lawyers are allowed.
False
In most states, the courts no longer grant "equitable" remedies
False
Interrogatories are written questions for which written answers are prepared by a judge.
False
It is guaranteed that any judgment will be enforceable.
False
Marketing puffery has traditionally been recognized in product liability law as a product defect.
False
Minimum contacts with a jurisdiction are never enough to support jurisdiction over a nonresident defendant.
False
Moral pressure constitutes false imprisonment
False
Most online dispute resolution services apply international principles promulgated by the United Nations to resolve disputes.
False
Negotiation is the most complex form of alternative dispute resolution.
False
No court engages in a risk-utility analysis to determine whether the risk of harm from a product is outweighed by its utility.
False
No court offers mediation as an option before a case goes to trial.
False
No party can appeal a judge's ruling on a pretrial motion
False
One characteristic of an abnormally dangerous activity is that it involves a low risk of serious harm
False
Only persons who are explicitly invited onto a business's premises are considered business invitees
False
Procedural law is irrelevant with respect to a person's ability to pursue a legal claim.
False
Service of process is the process of obtaining information from an opposing party before trial.
False
Some cases decided by federal courts of appeals are not subject to review by the United States Supreme Court
False
Some risks are obvious but, with respect to the duty of care required to establish negligence, a warning is always necessary
False
Specifically targeting the customers of a competitor is always a legitimate business practice.
False
Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights.
False
States do not have exclusive jurisdiction on any matter.
False
Statutory law does not include county ordinances.
False
The Constitution expressly delegated to the states the power to regulate interstate commerce
False
The Fifth Amendment prohibits unreasonable searches and seizures of persons or property
False
The First Amendment protects even speech that violates criminal laws
False
The First Amendment protects symbolic speech without limitation.
False
The President determines the jurisdiction of the federal courts.
False
The Second Amendment to the U.S. Constitution reserves all powers not delegated to the national government to the states
False
The U.S. Constitution explicitly mentions a general right to privacy
False
The U.S. Constitution reserves to the federal government all powers not granted to the states.
False
The United States Supreme Court does not have original jurisdiction in any case.
False
The amount in controversy in a diversity of citizenship case must be more than $1 million before a federal court can take jurisdiction
False
The common law is a term for the laws that are familiar to most of us
False
The concept of corporate social responsibility is imposed on corporations by law
False
The doctrine of strict liability can be applied to sellers of goods, but not distributors.
False
The effectiveness of internal company codes of ethics is determined by the degree of their enforcement by legal authorities
False
The establishment clause requires a complete separation of church and state.
False
The extreme risk of an activity is a defense against imposing strict liability.
False
The most widely used defense in negligence actions is consent.
False
The party against whom a lawsuit is brought is the plaintiff or petitioner
False
The rights secured by the Bill of Rights are absolute
False
The states can establish laws that substantially affect trade and commerce.
False
The term common law refers to law that is common throughout the world.
False
The term police power encompasses just the enforcement of criminal laws.
False
The verdict in a summary jury trial is binding.
False
There is one uniform set of rules of procedure for all courts.
False
Through tort law, society compensates those who inflict injuries on others.
False
To avoid liability for negligence, a business owner must protect its customers against all risks.
False
To commit an intentional tort, a person must have an evil or harmful motive.
False
To have standing to sue, a party must be "standing" in the geographical jurisdiction of the court in which a suit is filed.
False
To support the imposition of strict product liability, a product must be substantially changed from the time it is sold to the time an injury occurs.
False
Under a theory of market-share liability, a manufacturer sells "shares" of its potential strict liability and thereby spreads the risk and the cost
False
Under the Constitution, speech—oral, written, or symbolized by conduct—cannot be restricted in any way.
False
Under the Constitution, the judicial branch is responsible for foreign affairs
False
Under the doctrine of comparative negligence, only the plaintiff's negligence is taken into consideration
False
Under the doctrine of strict liability, if there is no fault, there is no liability.
False
Under the doctrine of strict liability, liability is imposed only if a person fails to use reasonable care
False
Under the principle of rights theory, one person's principles are as "right" as another's.
False
Under the theory of negligence, the duty of care requires an intentional act.
False
Unintentionally causing a party to break a contract may constitute wrongful interference with a contractual relationship.
False
Unless a corporation violates a law, its actions do not raise questions about corporate ethics.
False
When a defendant finishes introducing evidence, the trial is concluded
False
When all the judges (or justices) agree on a decision, a majority opinion is written for the entire court.
False
Whether a law is constitutional depends on its source
False
Under the Constitution, the judicial branch makes the laws.
Legislative
A court can exercise jurisdiction over property located that is located within its boundaries
True
A court's review of an arbitrator's award may be restricted
True
A defamatory statement must be communicated to a third party to be actionable.
True
A defense available in an action based on a negligence theory is that the plaintiff failed to prove one or more of the required elements.
True
A design defect in a product will support the imposition of liability on a strict product liability basis.
True
A law that discriminates based on gender must substantially relate to an important government objective to be valid under the equal protection clause.
True
A law that prohibits or inhibits a person from exercising a fundamental right because of their national origin will be subject to "strict scrutiny" under the equal protection clause.
True
A manufacturer's duty of care extends to the inspection and testing of products bought to incorporate in the final product.
True
A manufacturing defect is a departure from a product unit's design specifications that results in products that are physically flawed
True
A motion for a directed verdict is also known as a motion for judgment as a matter of law
True
A product contains a manufacturing defect when the product departs from its intended design even though all possible care was exercised.
True
A product liability claim may be based on the tort theory of fraud
True
A public policy underlying the imposition of strict product liability is that consumers should be protected against unsafe products.
True
A statute of limitations may restrict the time within which an action in product liability may be brought
True
A statute of repose places outer time limits on product liability actions
True
Administrative law consists of the rules, orders, and decisions of administrative agencies.
True
All powers not specifically delegated to the federal government are reserved to the states
True
An action may be legal but not ethical
True
An answer can deny the allegations made in a complaint.
True
An appellate court can reverse the decision of a trial court that erred.
True
An inadequate warning will support the imposition of liability on a strict product liability basis.
True
An individual's privacy is invaded if his or her likeness is used for commercial purposes without permission.
True
Before a trial, the plaintiff can file a motion to dismiss.
True
Bribery of foreign government officials is both an ethical and a legal issue.
True
Business decision makers are expected to make decisions that are ethically sound.
True
Business ethics looks at the decisions that businesses make or have to make and whether those decisions are right or wrong.
True
Cases arising between citizens of different states involve diversity of citizenship
True
Codes of ethical conduct can indicate how employees are expected to act.
True
Companies are required to set up confidential systems so that employees can "raise red flags" about suspected illegal or unethical accounting practices.
True
Companies that provide employee support through ethical training programs (as opposed to companies that provide no training) generally have more effective ethics codes.
True
Corporations can be viewed as "citizens" that are expected to participate in bettering society.
True
Defense of others is a defense to an allegation of assault.
True
Defense of others is a defense to an allegation of battery.
True
